* $6.1 million of asset and inventory write-offs, which include $4.8 million to reduce the carrying value of two rigs and $1.3 million in inventory writedowns, related to the Company's decision to no longer provide its drilling services in Colombia;

* $4.3 million of non-cash charges to increase the provision for the reduction in carrying value of certain drilling-related assets; and,

* $4.8 million loss associated with the sale of the Company's investment in a joint venture.

Excluding these pre-tax charges, the adjusted net loss was $23.3 million, or $(0.19) per share.

Fourth quarter Adjusted EBITDA was $28.6 million, compared with $35.4 million for the preceding quarter.

Gary Rich, the Company's Chairman, President and CEO said, "Cost reductions, particularly those implemented in the second half of the year, resulted in fourth quarter Adjusted EBITDA that was slightly higher than we anticipated despite a 14 percent sequential decline in revenues. We experienced activity declines across all three segments as low commodity prices continued to curtail customer activity across multiple geographic markets.

"We further strengthened our financial position by reducing our total debt by $30 million during the year and enhanced our liquidity and financial flexibility by increasing our revolver capacity. By efficiently managing our cash receipts and spending, we ended the year with a cash balance of $134 million and an undrawn revolver. Our total liquidity as of December 31, 2015 was approximately $322 million as compared with approximately $178 million at December 31, 2014.

"From an operational perspective, our U.S. rental tools business outperformed the U.S. rig count as we maintained share and grew our Gulf of Mexico footprint. While the U.S. rig count declined 47 percent in 2015, our U.S. rental tools revenue was 37 percent lower. In addition, we increased gross margin as a percentage of revenue in our international rental tools business despite lower revenue as we inserted new management, consolidated and closed locations, reduced headcount, and improved the management of our supply chain.

"Going forward, we believe rig utilization and pricing will continue to come under pressure, especially as the deteriorating market fundamentals impact our international drilling customers. We also think the lower U.S. rig count will further impact utilization and pricing for our rental tools. In response, we will maintain our focus on managing our cash flows. As part of that strategy, our 2016 capital expenditures are expected to be approximately $50 million as compared with $88 million in 2015."

Fourth Quarter Review

Parker Drilling's revenues for the 2015 fourth quarter, compared with the 2015 third quarter, decreased 14.2 percent to $148.7 million from $173.4 million, operating gross margin excluding depreciation and amortization expense (gross margin) decreased 22.7 percent to $34.3 million from $44.4 million and gross margin as a percentage of revenues was 23.1 percent, compared with 25.6 percent for the prior period.

Drilling Services

For the Company's Drilling Services business, which is comprised of the U.S. (Lower 48) Drilling and International & Alaska Drilling segments, revenues declined 15.1 percent to $99.0 million from $116.6 million, gross margin decreased 24.6 percent to $20.5 million from $27.2 million, and gross margin as a percentage of revenues was 20.7 percent, compared with 23.3 percent for the prior period.

U.S. (Lower 48) Drilling

U.S. (Lower 48) Drilling segment revenues were $3.5 million, a 41.7 percent decrease from 2015 third quarter revenues of $6.0 million. Gross margin was a $2.2 million loss as compared with a 2015 third quarter gross margin loss of $1.9 million. The declines in revenues and margin were primarily the result of lower utilization, partially offset by lower costs.

International & Alaska Drilling

International & Alaska Drilling segment revenues were $95.5 million, a 13.7 percent decrease from 2015 third quarter revenues of $110.7 million. Gross margin was $22.6 million, a 22.3 percent decrease from 2015 third quarter gross margin of $29.1 million. Gross margin as a percentage of revenues was 23.7 percent as compared with 26.3 percent in the 2015 third quarter. The decrease in revenues is primarily attributable to lower Latin America rig utilization and project services activities, partially offset by lower operating costs.

Rental Tools Services

Rental Tools segment revenues were $49.8 million, a 12.3 percent decrease from 2015 third quarter revenues of $56.8 million. Gross margin was $13.8 million, a 19.8 percent decrease from 2015 third quarter gross margin of $17.2 million. Gross margin as a percentage of revenues was 27.7 percent as compared with 30.3 percent in the 2015 third quarter. Reduced revenues and gross margin were primarily due to the continued decline in U.S. land drilling activity, as well as lower activity in certain international markets.

General and Administrative expense decreased to $6.9 million for the 2015 fourth quarter, from $8.9 million for the 2015 third quarter.

The Company's effective tax rate in the fourth quarter was 7%, primarily due to discrete items as well as receiving no tax benefit from certain charges incurred during the quarter.

Capital expenditures in the fourth quarter were $15.7 million, and were $88.2 million for the year.

Conference Call

Parker Drilling has scheduled a conference call for 10:00 a.m. Central Time (11:00 a.m. Eastern Time) on Thursday, February 18, 2016, to review reported results. The call will be available by telephone at (888) 510-1785, access code 2054769. The call can also be accessed through the Investor Relations section of the Company's website. A replay of the call can be accessed on the Company's website for 12 months and will be available by telephone from February 18, 2016 through February 25, 2016 at (888) 203-1112, access code 2054769#.

Cautionary Statement

This press release contains certain statements that may be deemed to be "forward-looking statements" within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934. All statements in this press release other than statements of historical facts that address activities, events or developments that the Company expects, projects, believes, or anticipates will or may occur in the future are forward-looking statements. These statements include, but are not limited to, statements about anticipated future financial or operational results; the outlook for rental tools utilization and rig utilization and dayrates; the results of past capital expenditures; scheduled start-ups of rigs; general industry conditions such as the demand for drilling and the factors affecting demand; competitive advantages such as technological innovation; future operating results of the Company's rigs, rental tools operations and projects under management; future capital expenditures; expansion and growth opportunities; acquisitions or joint ventures; asset sales; successful negotiation and execution of contracts; scheduled delivery of drilling rigs or rental equipment for operation; the strengthening of the Company's financial position; increases in utilization or market share; outcomes of legal proceedings; compliance with credit facility and indenture covenants; and similar matters. These statements are based on certain assumptions made by the Company based on management's experience and perception of historical trends, current conditions, anticipated future developments and other factors believed to be appropriate. Although the Company believes that its expectations stated in this press release are reasonable, such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company, that could cause actual results to differ materially from those implied or expressed by the forward-looking statements. These include risks relating to changes in worldwide economic and business conditions, fluctuations in oil and natural gas prices, compliance with existing laws and changes in laws or government regulations, the failure to realize the benefits of, and other risks relating to, acquisitions, the risk of cost overruns, our ability to refinance our debt and other important factors, many of which could adversely affect market conditions, demand for our services, and costs, and all or any one of which could cause actual results to differ materially from those projected. For more information, see "Risk Factors" in the Company's Annual Report filed on Form 10-K with the Securities and Exchange Commission and other public filings and press releases. Each forward-looking statement speaks only as of the date of this press release and the Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

Company Description

Parker Drilling provides drilling services and rental tools to the energy industry. The Company's Drilling Services business serves operators in the inland waters of the U.S. Gulf of Mexico utilizing Parker Drilling's barge rig fleet and in select international markets and harsh-environment regions utilizing Parker-owned and customer-owned equipment. The Company's Rental Tools Services business supplies premium equipment and well services to operators on land and offshore in the U.S. and international markets. More information about Parker Drilling can be found on the Company's website at www.parkerdrilling.com.

PARKER DRILLING COMPANY

Consolidated Condensed Balance Sheets

(Dollars in Thousands)

December 31, 2015

December 31, 2014

(Unaudited)

ASSETS

CURRENT ASSETS

Cash and Cash Equivalents

$

134,294

$

108,456

Accounts and Notes Receivable, Net

175,105

270,952

Rig Materials and Supplies

34,937

47,943

Deferred Costs

1,367

5,673

Other Current Assets

21,038

29,279

TOTAL CURRENT ASSETS

366,741

462,303

PROPERTY, PLANT AND EQUIPMENT, NET

805,841

895,940

OTHER ASSETS

Deferred Income Taxes

139,282

130,165

Other Assets

65,040

32,251

TOTAL OTHER ASSETS

204,322

162,416

TOTAL ASSETS

$

1,376,904

$

1,520,659

LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES

Current Portion of Long-Term Debt

$

—

$

10,000

Accounts Payable and Accrued Liabilities

136,121

168,665

TOTAL CURRENT LIABILITIES

136,121

178,665

LONG-TERM DEBT

585,000

605,000

LONG-TERM DEFERRED TAX LIABILITY

68,654

52,115

OTHER LONG-TERM LIABILITIES

18,617

18,665

TOTAL CONTROLLING INTEREST IN STOCKHOLDERS' EQUITY

568,512

662,431

Noncontrolling interest

—

3,783

TOTAL EQUITY

568,512

666,214

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

$

1,376,904

$

1,520,659

Current Ratio

2.69

2.59

Total Debt as a Percent of Capitalization

51

%

48

%

PARKER DRILLING COMPANY

Consolidated Statement Of Operations

(Dollars in Thousands, Except Per Share Data)

(Unaudited)

Three Months
Ended
September 30,

Three Months Ended December 31,

2015

2014

2015

REVENUES

$

148,748

$

243,213

$

173,418

EXPENSES:

Operating Expenses

114,488

167,990

128,963

Depreciation and Amortization

37,720

38,455

39,584

152,208

206,445

168,547

TOTAL OPERATING GROSS MARGIN

(3,460)

36,768

4,871

General and Administrative Expense

(6,947)

(9,675)

(8,895)

Provision for Reduction in Carrying Value of Certain Assets

(9,268)

—

(906)

Gain (Loss) on Disposition of Assets, Net

(1,043)

621

383

TOTAL OPERATING INCOME (LOSS)

(20,718)

27,714

(4,547)

OTHER INCOME AND (EXPENSE):

Interest Expense

(11,388)

(10,779)

(11,293)

Interest Income

60

39

7

Other

(6,119)

1,148

(719)

TOTAL OTHER EXPENSE

(17,447)

(9,592)

(12,005)

INCOME (LOSS) BEFORE INCOME TAXES

(38,165)

18,122

(16,552)

INCOME TAX EXPENSE (BENEFIT)

(2,519)

9,983

31,930

NET INCOME (LOSS)

(35,646)

8,139

(48,482)

Less: net income attributable to noncontrolling interest

—

386

138

NET INCOME (LOSS) ATTRIBUTABLE TO CONTROLLING INTEREST

$

(35,646)

$

7,753

$

(48,620)

EARNINGS (LOSS) PER SHARE - BASIC

$

(0.29)

$

0.06

$

(0.40)

EARNINGS (LOSS) PER SHARE - DILUTED

$

(0.29)

$

0.06

$

(0.40)

NUMBER OF COMMON SHARES USED IN COMPUTING EARNINGS PER SHARE:

Basic

122,951,598

121,755,421

122,933,518

Diluted

122,951,598

123,295,412

122,933,518

PARKER DRILLING COMPANY

Consolidated Statement Of Operations

(Dollars in Thousands, Except Per Share Data)

(Unaudited)

Year Ended December 31,

2015

2014

2013

REVENUES

$

712,183

$

968,684

$

874,172

EXPENSES:

Operating Expenses

526,290

669,381

571,672

Depreciation and Amortization

156,194

145,121

134,053

682,484

814,502

705,725

TOTAL OPERATING GROSS MARGIN

29,699

154,182

168,447

General and Administrative Expense

(36,190)

(35,016)

(68,025)

Provision for Reduction in Carrying Value of Certain Assets

(12,490)

—

(2,544)

Gain on Disposition of Assets, Net

1,643

1,054

3,994

TOTAL OPERATING INCOME (LOSS)

(17,338)

120,220

101,872

OTHER INCOME AND (EXPENSE):

Interest Expense

(45,155)

(44,265)

(47,820)

Interest Income

269

195

2,450

Loss on extinguishment of debt

—

(30,152)

(5,218)

Other

(9,747)

2,539

1,503

TOTAL OTHER EXPENSE

(54,633)

(71,683)

(49,085)

INCOME (LOSS) BEFORE INCOME TAXES

(71,971)

48,537

52,787

INCOME TAX EXPENSE

22,313

24,076

25,608

NET INCOME (LOSS)

(94,284)

24,461

27,179

Less: net income attributable to noncontrolling interest

789

1,010

164

NET INCOME (LOSS) ATTRIBUTABLE TO CONTROLLING INTEREST

$

(95,073)

$

23,451

$

27,015

EARNINGS (LOSS) PER SHARE - BASIC

$

(0.78)

$

0.19

$

0.23

EARNINGS (LOSS) PER SHARE - DILUTED

$

(0.78)

$

0.19

$

0.22

NUMBER OF COMMON SHARES USED IN COMPUTING EARNINGS PER SHARE:

Basic

122,562,187

121,186,464

119,284,468

Diluted

122,562,187

123,076,648

121,224,550

PARKER DRILLING COMPANY

Selected Financial Data

(Dollars in Thousands)

(Unaudited)

Three Months Ended

Year Ended December 31,

December 31,

September 30,

2015

2014

2013

2015

2014

2015

REVENUES:

Drilling Services:

U.S. (Lower 48) Drilling

$

3,451

$

32,124

$

5,961

$

30,358

$

158,405

$

153,624

International & Alaska Drilling

95,546

118,711

110,661

435,096

462,513

410,507

Total Drilling Services:

98,997

150,835

116,622

465,454

620,918

564,131

Rental Tools

49,751

92,378

56,796

246,729

347,766

310,041

Total Revenues

$

148,748

$

243,213

$

173,418

$

712,183

$

968,684

$

874,172

OPERATING EXPENSES:

Drilling Services:

U.S. (Lower 48) Drilling

$

5,616

$

21,369

$

7,820

$

36,247

$

90,314

$

84,209

International & Alaska Drilling

72,902

93,564

81,586

325,346

368,424

324,439

Total Drilling Services:

78,518

114,933

89,406

361,593

458,738

408,648

Rental Tools

35,970

53,057

39,557

164,697

210,643

163,024

Total Operating Expenses

$

114,488

$

167,990

$

128,963

$

526,290

$

669,381

$

571,672

OPERATING GROSS MARGIN:

Drilling Services:

U.S. (Lower 48) Drilling

$

(2,165)

$

10,755

$

(1,859)

$

(5,889)

$

68,091

$

69,415

International & Alaska Drilling

22,644

25,147

29,075

109,750

94,089

86,068

Total Drilling Services:

20,479

35,902

27,216

103,861

162,180

155,483

Rental Tools

13,781

39,321

17,239

82,032

137,123

147,017

Depreciation and Amortization

(37,720)

(38,455)

(39,584)

(156,194)

(145,121)

(134,053)

Total Operating Gross Margin

$

(3,460)

$

36,768

$

4,871

$

29,699

$

154,182

$

168,447

PARKER DRILLING COMPANY

Adjusted EBITDA

(Dollars in Thousands)

(Unaudited)

Three Months Ended

December 31,
2015

September 30,
2015

June 30,
2015

March 31,
2015

December 31,
2014

Net Income (Loss) Attributable to Controlling Interest

$

(35,646)

$

(48,620)

$

(14,029)

$

3,222

$

7,753

Interest Expense

11,388

11,293

11,396

11,078

10,779

Income Tax (Benefit) Expense

(2,519)

31,930

(6,916)

(182)

9,983

Depreciation and Amortization

37,720

39,584

38,351

40,539

38,455

EBITDA

10,943

34,187

28,802

54,657

66,970

Adjustments:

Other Income and Expense

6,059

712

1,510

1,197

(1,187)

(Gain) Loss on Disposition of Assets, Net

1,043

(383)

138

(2,441)

(621)

Provision for Reduction in Carrying Value of Certain Assets

9,268

906

2,316

—

—

Special items (2)

1,265

—

—

—

—

Adjusted EBITDA (1)

$

28,578

$

35,422

$

32,766

$

53,413

$

65,162

(1)

We believe Adjusted EBITDA is an important measure of operating performance because it allows management, investors and others to evaluate and compare our core operating results from period to period by removing the impact of our capital structure (interest expense from our outstanding debt), asset base (depreciation and amortization), remeasurement of foreign currency transactions, tax consequences, impairment, and other special items. Special items include items impacting operating expenses that management believes detract from an understanding of normal operating performance. Management uses Adjusted EBITDA as a supplemental measure to review current period operating performance and period to period comparisons. Our Adjusted EBITDA may not be comparable to a similarly titled measure of another company because other entities may not calculate EBITDA in the same manner. EBITDA and Adjusted EBITDA are not measures of financial performance under U.S. Generally Accepted Accounting Principles (GAAP), and should not be considered in isolation or as an alternative to operating income or loss, net income or loss, cash flows provided by or used in operating, investing and financing activities, or other income or cash flow statement data prepared in accordance with GAAP.

(2)

For the three months ended December 31, 2015, special items include a $1.3 million write-off of inventory associated with our decision to no longer provide drilling services in Colombia.

PARKER DRILLING COMPANY

Reconciliation of Adjusted Earnings Per Share

(Dollars in Thousands, Except Per Share Data)

(Unaudited)

Three Months Ended

December 31,

September 30,

2015

2014

2015

Net income attributable to controlling interest

$

(35,646)

$

7,753

$

(48,620)

Earnings per diluted share

$

(0.29)

$

0.06

$

(0.40)

Adjustments:

Sale of investment in joint venture

$

4,799

—

—

Provision for reduction in carrying value of certain assets

9,268

—

—

Write-off inventory

1,265

—

—

Valuation allowance

—

—

36,632

Total adjustments

15,332

—

36,632

Tax effect of adjustments

(3,010)

—

—

Net adjustments

12,322

—

36,632

Adjusted net income attributable to controlling interest(1)

$

(23,324)

$

7,753

$

(11,988)

Adjusted earnings per diluted share(1)

$

(0.19)

$

0.06

$

(0.10)

(1)

We believe Adjusted net income (loss) attributable to controlling interest and Adjusted earnings per diluted share are useful financial measures for investors to assess and understand operating performance for period to period comparisons. Management views the adjustments to net income attributable to controlling interest and earnings per diluted share to be items outside of the Company's normal operating results. Adjusted net income (loss) attributable to controlling interest and Adjusted earnings per diluted share are not measures of financial performance under GAAP, and should not be considered in isolation or as an alternative to net income (loss) or earnings per diluted share.